Magazine article Black Enterprise

Shipshape: Jerome Abernathy's Boating Is a Worthy Sea Investment

Magazine article Black Enterprise

Shipshape: Jerome Abernathy's Boating Is a Worthy Sea Investment

Article excerpt

Jerome Abernathy has sailed from Charleston, South Carolina, to Bermuda. He day-sails monthly from his homeport in New York to Rhode Island and Connecticut. Despite an active travel itinerary, Abernathy, who once owned a 36-foot Beneteau, didn't hesitate to enter a co-ownership arrangement for his second boat. "It can be less expensive to own a larger boat in a partnership than to own a smaller one by yourself," says Abernathy, who says his first boat, Noe, swallowed $9,000 a year in maintenance, insurance, and dockage fees.

At the 2001 Annapolis Boat Show, Abernathy, a hedge fund manager with Stonebrook Structured Products, partnered with his friend and colleague Arnold Mintz to invest in a $300,000 new Beneteau 473. Abernathy's share of maintenance costs for Victory averages $6,000 every six months.

Camaraderie and spending less time on upkeep are benefits of co-ownership to Abernathy, who says having "compatible uses for the boat" were important in his decision. He says it's important to have a written agreement that clearly articulates the terms of the partnership. "A new boat will depreciate, but not as fast as cars," says Abernathy. In fact, after initial depreciation--depending on how well the vessel is maintained--a boat actually increases in value. "If your boat has a galley [kitchen] and head [bathroom], your boat loan can qualify for second-home tax treatment," explains Abernathy, "which considerably lowers the cost of ownership." For further savings, tethering your boat to an offshore anchor--called mooring--costs roughly $100 per month, compared with paying up to nearly $700 to dock it. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.